By: Amr Adel
Dubai - Mubasher: The CEO of United Foods Co (UFC) said that the company’s exports are expected to slow down this year due to weaker demand that comes as a result of foreign exchange fluctuations, and conflicts in the Middle East.
Fethi Khairi added in an interview with Mubasher on Sunday that exports accounted for 80% of the company’s sales five years ago, indicating that exporting was affected by currency fluctuations markets such as Egypt, Sudan, Libya, Tanzania, Ethiopia, and Somalia.
Sales also declined in Syria, Yemen, and Libya due to the ongoing conflicts in these countries, in addition to the change in food quality standards required in Oman and Qatar, Khairi explained during the interview that was held on the sidelines of the Gulfood Exhibition.
There are currently three alternatives to make up for the decrease in exports: expanding in local markets, adding new products, or expanding exports to the Gulf countries, he added.
UFC is targeting to increase sales by 3% to AED 416 million by the end of 2017 up from AED 404 million last year, noting that the marginal growth in sales is attributed to the increase in this year’s exports, which accounted for 50% of total sales.
The CEO also revealed that the company has allocated AED 20 million for its investment plans for 2017 and 2018 to finance its activities, noting that this does not include any provisions for new acquisitions. He added that UFC is seeking to acquire another company specialised in food manufacturing or distribution.
The company has recently opened new warehouses in Abu Dhabi in order to increase sales in the emirate.
According to Khairi, UFC has a market share of 70% in vegetable ghee, 50% in margarine, and 7% in cooking oil.
